Red Cat Bids €39 a Share for Steyr Motors

US drone maker Red Cat Holdings has proposed buying every outstanding share of Steyr Motors, the Austrian engine specialist, for €39.00 each in cash. For Steyr shareholders it is a premium exit on the table. For Red Cat, it would bring a key supplier for its uncrewed boats in-house.

The deal is not done, and the formal offer has not yet been launched. Red Cat said on 19 October that the offer document still has to be published, that approvals are needed in four countries, and that “there can be no assurance that the offer will be completed.”

In brief

Red Cat proposes a €39.00-a-share cash offer for all of Steyr Motors, backed by anchor shareholder B&C, which holds about 15% and has agreed to tender.
Steyr’s marine engines fit Red Cat’s Blue Ops uncrewed surface vessel strategy, and Red Cat says Steyr’s headquarters, factory and R&D would stay in Austria.
The offer document is not yet out; the bid needs 50% plus one share and approvals in Austria, Italy, Australia and the UK.

The price and who has signed up

In its announcement, Red Cat said the €39.00 price is a 28.9% premium to Steyr’s closing share price on 16 October 2026, a 27.3% premium to the 30-day volume-weighted average price, and a 55.8% premium to the 52-week low. It describes the bid as a “fully financed all-cash offer”, made through a wholly owned subsidiary.

The headline backer is B&C Holding Österreich GmbH, Steyr’s anchor shareholder. It has entered an irrevocable undertaking to tender its shares, representing about 15% of the share capital. Steyr chief executive Julian Cassutti said the all-cash offer “is a chance to realize their investment in cash today” and added: “I intend to tender my own shares alongside them.”

The supervisory board is warm but not yet committed. “Subject to review of the legal and economic terms and conditions such as published in the offer document, we view the potential transaction favorably,” said chairman Rolf Wirtz.

Red Cat did not give a total value for the deal. DroneXL calculated that across Steyr’s 5,251,261 shares the bid values the company at about €205 million.

Why Red Cat wants an engine maker

The answer sits in the water. Red Cat says the deal would strengthen its Blue Ops uncrewed surface vessel business by pairing Steyr’s marine engine technology and European base with Red Cat’s defence customers. DroneXL reports that Steyr’s diesel powers the Variant 7 drone boat that Blue Ops builds, and that Blue Ops added a Volvo Penta engine in August.

Red Cat is also pitching continuity to Austria. It says it would keep Steyr’s headquarters, manufacturing and R&D in the country and support Steyr’s existing, “customer-agnostic” engine business. “We see Austria as central to the future of the business,” said Red Cat chief executive Jeff Thompson. Steyr’s engines are used mainly in military special vehicles, military and civilian boats, and as auxiliary power units for main battle tanks and locomotives, according to the release.

This is a second attempt. Red Cat said earlier non-binding talks were discontinued in July 2026 before resuming. DroneXL adds that Steyr cut its 2026 revenue guidance on 17 August, to roughly €56 million to €61 million from €75 million to €95 million.

What has to happen next

The offer document is expected on a dedicated transaction website, in German with a non-binding English translation. Red Cat expects the acceptance period to open shortly afterwards and to end on 18 December 2026 at 5:00 p.m. CET (16:00 UK time). It warns that custodian banks may set earlier cut-offs and that tendering can take several days.

The conditions are the real test. Red Cat needs acceptances of at least 50% plus one share, plus regulatory approvals in Austria, Italy, Australia and the UK. As DroneXL notes, neither company has said what would happen to any shares left outside the offer if it succeeds.

Our read

This is TSN’s analysis. Buying a supplier rather than relying on one is a familiar move in defence hardware, and B&C’s 15% gives Red Cat a head start. But 15% is a long way from the 50% plus one it needs, so the board’s formal view on the offer document, and how many other holders follow Cassutti, will decide whether this closes by the 18 December deadline.